An example of an extreme rent increase of $580 per week has been labelled ‘ridiculous’ and ‘extraordinary’ while highlighting the challenges Sunshine Coast and Noosa tenants face in a landlord’s market.
A couple, who asked not to be identified, were paying $670 a week for a four-bedroom house in a family neighbourhood in the Noosa Shire area when the landlord raised it to $860 — a 28 per cent jump — and undertook improvements while they were living in it.
But when they decided to move out in June, after paying the extra $190 a week for a while, the couple saw the property later advertised online for $1250 a week — an 86 per cent spike.
That equated to an extra $580 a week in rent compared to what they had signed the lease for originally when they moved into the house two years prior.
The couple is taking their matter to the Queensland Civil and Administrative Tribunal (QCAT) — which decides a range of tenancy disputes — claiming “unfair treatment” towards the end of the lease.
When the contract was coming to an end in June they decided to move out and buy a house because they calculated the amount they were paying in rent would cover a mortgage.
The four-bedroom modern home is being advertised as five-star quality and boasts a family room, media room, pool, outdoor deck and entertainment area.
The couple said they didn’t blame the owners for wanting a higher return from their investment.
“But an 86 per cent increase in 2.5 years means that there has to be a knock-on effect,” the former tenant told Sunshine Coast News.
“Staff will need to be paid more if they are to live and work in the area. If staff need to be paid more for businesses to attract talent then that will be passed on to the community.
“I’m sure people will be surprised when their coffee is 86 per cent more expensive than two years ago.”
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Tenants Queensland CEO Penny Carr said the rent rise was “crazy” and “ridiculous” and an example of landlords being “opportunistic”.
Ms Carr said complaints about rent increases had become more common since the end of 2020, with stories of prices being pushed up by $50 or $100 a week.
“There are certainly going to be landlords out there who are greedy,” she said.
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Real Estate Institute Queensland (REIQ) CEO Antonia Mercorella said the $580 rent difference was “extraordinary” but not reflective of all landlords, even in a tight market.
“That story you told me, it seems quite extraordinary but it is economics — supply and demand,” said Ms Mercorella.
“What we are seeing at the moment is unprecedented levels of demand and there is simply not enough stock to meet that demand and as a result we are starting to see rental prices increase.”
Ms Mercorella (pictured) said landlords and real estate agents were not controlling the market but responding to it.
“I have heard this idea that it’s real estate agents who are creating the problem, with respect I disagree with that. Real estate agents don’t create the market .
“What we need to understand is real estate agents have an obligation to their clients. When it comes to rental properties their job is to ensure they are giving advice to their client on what the market is doing and what an appropriate rental asking price is.”
Ms Mercorella said the current rental cycle was a property owners’ market but it wasn’t always that way and it would change again.
“Not too long ago in Queensland we had very high vacancy rates in Queensland and you would have classified it as a renters’ market,” she said.
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“Like any property market there are cycles and at the moment it’s very challenging for renters so I’ll acknowledge that and I absolutely appreciate the challenges but equally, not too long ago, it was also a tough market for landlords.”
The Sunshine Coast vacancy rate rose from an extremely low 0.5 per cent to 0.6 per cent in the June quarter as Queensland experienced record low vacancy rates.
“We are hearing some really tragic stories of homelessness and people living out of cars which is by any measure certainly not something that is a good thing,” said Ms Mercorella.
She said there were some statutory protections for tenants against their rents being bumped up mid-lease.
Tenant protections
Under law, rent cannot be increased during a fixed term unless it is stated in the tenancy agreement and all of the following occurs:
- the agreement states the rent will be increased
- the agreement states the new amount (or how it will be worked out)
- the property manager/owner gives the tenant at least 2 months’ notice in writing, and
- it has been at least 6 months since the tenancy started or since the last increase
Find out more here.
